Haohua Industrysupplies LDX2101, 2205, Ferralium 255, Zeron 100 and LDX2507 in the form of plate, sheet, strip, bar, pipe, tubing, pipe fittings, flanges and weld wire.
Duplex Stainless Steel Overview
Duplex Stainless Steels, also referred to as austenitic-ferritic stainless steels, are a family of grades with about equal proportions of ferrite and austenite. These steels have a duplex microstructure which contributes to their high strength and high resistance to stress corrosion cracking. Due to their high content of chromium, nitrogen and molybdenum, duplex steels offer good resistance to local and uniform corrosion. Duplex stainless steels have good weldability.
Today, modern duplex stainless steels can be divided into three groups:
Of the duplex grades, duplex 2205 is the most widely used. However, the super duplex steels like Zeron® 100 and LDX2507 are excellent for servicing severe corrosive environments, such as offshore and marine applications. Lean duplex 2101 is available as an economic alternative to 300 series stainless steels.
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Although the construction machinery industry has entered a seasonal off-season, the peak of product sales has passed, but this does not mean that the demand for raw materials will be reduced. Especially at the end of the year, some units will purchase products for the coming year, which will also release some purchasing power.
Since 2009, the prices of steel, rubber, coal and other raw materials have been ups and downs. How to purchase raw materials at relatively low prices is one of the focus of the company.
Steel continues to rise risk
The most striking impression of construction machinery is the texture of steel. It is true that steel is a very important part of the cost of a product. More than 80% of the weight of any construction machinery product is made of steel. After experiencing a sharp rise in steel prices in 2008, steel prices did not seem to have returned to a stable state in 2009. Since May this year, steel prices have continued to climb, except for the five trading days last week, the Nishimoto Shinkansen steel index fell from 4,050 yuan / ton to 3,770 yuan / ton, fluctuations reached 280 yuan / ton, rare return situation . As of two weeks ago, domestic steel prices have risen for 16 weeks. In this regard, the industry generally believes that the possibility of a reversal of steel prices is very small. Fluctuations in steel prices have increased the difficulty for companies to control product costs. Especially for meager profit products such as loaders and road rollers, the price is almost a small increase in steel prices, and stocking steel at low prices is one of the keys to profitability. Last year, Longgong was storing a batch of steel at a relatively low point, which enabled the company to obtain a certain cost advantage and thus occupied the market opportunity.
It is impossible for companies to purchase steel for a few years, which will encourage them to focus on steel prices as they do short-term trading in the stock market, and strive to buy steel at a relatively low level, thus keeping costs under expectations. Within the scope.
Robust growth in rubber cycle fluctuations
From the perspective of raw material composition, the second most used in engineering machinery products are rubber products, operating equipment in the cab, rubber tracks, sealing structures... these parts are inseparable from rubber. Although a considerable part of these products are produced by the accessory companies, they are then purchased by the host company. However, the price of the matching parts enterprises is relatively flexible, and the price will fluctuate according to the fluctuation of the price of rubber materials. The cost pressure will eventually be distributed to the host enterprises.
Although the amount of rubber products used is not much in construction machinery products, its added value in the production process is higher than that of steel, and it is the key to determining product comfort and sealing effect. Therefore, the trend of rubber prices is also one of the most concerned issues for companies in the industry.
Affected by a series of factors such as economic stimulus policies, strong auto industry, and storage, this year, the prices of rubber products have generally shown an upward trend. In particular, a series of production reduction and export control measures in Southeast Asian countries, which are the main producers of rubber, have led to an increase in rubber prices. By analyzing the ru0911 (natural rubber futures delivered in November this year) index, it can be seen that since April this year, rubber prices reached a high point at the end of July and early August this year, and the price per ton exceeded 16.8 million, the lowest in April. The point is about 3,000 yuan higher. However, it is not difficult to see from the curve of ru0911 that in the past 5 months, this seemingly steadily rising price curve has experienced five ups and downs, except for one fluctuation of about 500 yuan, and the other four fluctuations. More than 1,000 yuan.
Rubber prices have been rising slowly in this ups and downs this year, and it is estimated that this trend will continue. For construction machinery enterprises, especially for supporting parts enterprises with rubber as the main raw material for production, the cyclical change of rubber price interval is relatively obvious. Seizing the opportunity to seek a relatively low point is the key to controlling costs. For the host company, the price game between the company and the accessory company has become more and more subtle.
Significant impact on the coal economy
A large amount of electric energy and heat energy are required in the production process, and a large amount of heat energy is required in the production process of steel, rubber, etc., and the supply of these energy depends on burning coal. Although these two reasons do not seem to be directly related to the production process of construction machinery products, because they are closely related to the production process of construction machinery, coal and coke are also listed without exception in the statistics of construction machinery raw materials in almost all institutions. In it.
In general, the coal industry cycle generally lags behind the economic cycle by about one year. Affected by macroeconomic impacts and overcapacity problems, as early as the end of last year, industry insiders generally predicted that this year's coal price trend will show a downward trend of inertia, at least to the end of 2007. If the economy has not recovered, the low coal price trend may continue into 2010. Specifically, in the first quarter of this year, due to the impact of both crude oil and coal prices in the international market, the domestic coal market prices continued to decline slightly; in April and May, crude oil prices in the international market rose slightly, and domestic coal-producing provinces restricted production. Insured prices, while the coal circulation brokers are optimistic about the coal market price expectations in the coming months, and began to enter the market in Yancoal. The market coal price has changed from a continuous negative to a small slow recovery. In June, coal prices fell slightly and stabilized. Taking the Qinhuangdao coal price market as an example, the reference price for the closing of the Qinyoudao Port in Shanxi with the calorific value of 5,500 kcal/kg and the calorific value of 5,800 kcal/kg or more in Qinhuangdao Port is in late June and early July respectively. Stable at 570 yuan / ton and 605 yuan / ton, compared with the price of coal in May, the price per ton dropped by 15 to 25 yuan.
It is worth noting that because the equipment manufacturing industry belongs to the main battlefield of coal consumption, the vast majority of coal costs have been calculated once in the supply of steel, rubber and other materials, as well as the cost of electricity, and the price of electricity is relatively stable. Therefore, in addition to the already calculated part, the direct impact of changes in coal prices on the company is small.
Duplex Stainless Steel
Duplex Stainless Steels Available
Lean Duplex such as LDX2101
Standard Duplex such as 2205, the work-horse grade accounting for more than 80% of duplex usage
Super Duplex such as Ferralium 255 and Zeron 100 and LDX2507
What are the Characteristics of Duplex Stainless Steels ?
Very good resistance to uniform corrosion
Very good resistance to pitting and crevice corrosion
High resistance to stress corrosion cracking and corrosion fatigue
High mechanical strength
Good sulfide stress corrosion resistance
Good abrasion and erosion resistance
Good fatigue resistance high energy absorption
Low thermal expansion
Good weldability
In what Applications are Duplex Stainless Steels® used ?
Oil and gas equipment
Offshore technology
Seawater desalination plants
Chemical industry, especially when handling chlorides
Flue-gas cleaning
Desalination plants and seawater systems
Pulp and paper industry
Cargo tanks and pipe systems in chemical tankers
Firewalls and blast walls on offshore platforms
Bridges
Storage tanks
Pressure vessels, reactor tanks, and heat exchangers
Rotors, impellers and shafts
Raw material price fluctuation test engineering machinery enterprise
The restriction of core components is one of the most difficult problems for construction machinery companies. However, under the circumstance of this problem, people often overlook the fact that there is another aspect that has a great impact on the cost of the enterprise—the price of raw materials. Loaders, cranes, forklifts, rotary drilling rigs... These are different types of construction machinery products. The demand for steel, rubber and other raw materials is very large, and the proportion of raw materials in these products is high.